Impact of Covid-19 on Business Operations of Ritz London: A Quantitative Analysis

This report analyzes the impact of Covid-19 on the business operations of Ritz London, a renowned hospitality organization. It includes a literature review, identification of datasets, quantitative analysis, and visualizations of data. The report recommends offering training programs and adopting effective technological advancements to cope with the challenges arising due to the pandemic.

Problem based report

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Defining the business research problems...............................................................................1
Literature review....................................................................................................................1
Identification of dataset sourced from the office of national statistics websites that will enable
to address the chosen business research problem...................................................................3
Visualizations of data drawn from your quantitative analysis.........................................................4
Findings............................................................................................................................................6
CONCLUSION................................................................................................................................6
References:.......................................................................................................................................7

INTRODUCTION
In global the Covid-19 is becoming an emerging issue which has affected the global;
supply chain. The sales and profit margin of business organisation is reduced because of lock
down. Due to international lock down, there was halt on national and international flights which
made difficulty for the people to move from one place to another. The report has objective of
analysing the Covid-19 impact on business operations of organisation. The present report, RITZ
LONDON is been considered which is renowned hospitality that provides several facilities such
as room service, Wi-fi, food and many more (Aigbedo, H., 2021). The report will discuss
business research problem along with literature review, models and more. In addition, from ONS
website the data set has been sourced. Further, there is analysis of information by using
quantitative tools, charts and more along with this data is visualised through analysis of tables,
charts and graphs.
MAIN BODY
Defining the business research problems
The business faces several issues in respect to availability of funds, scarcity of resources,
operations management and more. Now, for the company’s pandemic is becoming a significant
issue. On operations of the business entity the covid-19 puts a tremendous impact and because of
this companies are not able to generate adequate profit margin. In context to Ritz London, it is
five-star hotel which offers numerous facilities and covid-19 put the major impact on company
operations (Burhan and et. al., 2021). The company reduces the number of employees due to this
pandemic. The pandemic also affected the supply of raw material and necessary equipments.
This current study has been conducted for assessing impact of pandemic on business operations
of company within industry of hospitality.
Literature review
In overall economy the hospitality sector is an important part which have significant
contribution in enhancing overall country. Within the hospitality sector it is been seen that
several people are working. In UK, it is important industry where high amount of people have
together working. In this a shared model device is utilised for the improvement of the quality
services within hospitality industry.
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From above pyramid, first element is insight which is associated with the improvement of
overall financial performance. The next component is simplification in which significant efforts
are put so that efficiency, scope can be increased overall within the respective hospitality sector.
Furthermore, the efforts of customers are minimised with help of simplifying services. In last,
final element is related to reliability that is in regards to increase of efficiency, cost minimization
and improvement in entire quality. The implementation of service model is very useful along
with beneficial for quality enhancement within hospitality industry (Chen, Z. and Hang, H.,
2021).
The covid-19 puts an serious impact on business organisation which is been analysed.
The economic crisis and coronavirus pandemic are unprecedented which is not witnessed this
level of crisis previously by the world (Percentage change in like-for-like sales of pub, bar and
restaurant groups prior to the coronavirus (COVID-19) lockdown in Great Britain in March
2020). Nowadays, the people are becoming more conscious in rereads to cleanliness and hygiene
due to increase of coronavirus. The individual examines the cleanliness and hygiene before
visiting to any specific place. With the same time. The decline of 25% is been witnessed in
booking of hotels. In accordance to report published by CNBC, the whole hospitality sector is
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been witnessed by the reduction of nearly 90000 core in 2020. Hence, significant efforts are put
by the hospitality companies which aims to have dealing with serious impact of pandemic.
In framework of Ritz London, serious impact of pandemic is faced by them. Within the
company they have enhanced the cleaning procedure (A SAFE RITZ JOURNEY, 2022). For
this objective, they ensues to meet with pre-defined guidelines of government to beat effectively
the impact of viruses and bacteria. Furthermore, the hotel provides facility of hand sanitizers so
that impact of deadly viruses can be minimised. For the horl of Ritz London it is mandatory for
all team members of hand washing & sanitising their hands to protect from disease.
Identification of dataset sourced from the office of national statistics websites that will enable to
address the chosen business research problem
The global pandemic hit the hospitality industry in worst manner. There was uneven impact
that force the strict lock down on bars, clubs and more. From analysis in may 2021 there was
increase in spending of customer but still remains less than 70% of pre-panademic levels.
Additionally, there is witness of small increment relatively to consumer spending in may 2021
within the spending of hospitality industry. It is being evaluated that accommodation and food
activities is been affected deeply because of pandemic. The hospitality industry is considered as
major affected industries through lock downs and restriction which is imposed by government.
The Brexit also influenced the hospitality sector. From the give data, 1,650,000 employees is
been laid off from hospitality sector in 2020. In the end of may 2021, 590,000 employees has
been laid off that represents 25% of all laid off employees (Coronavirus and its impact on UK
hospitality: January 2020 to June 2021).
It is been evaluated that business turnover is changed during the time of pandemic. The
turnover was 1.2 billion relatively in may 2020 to 3.4 million in 2021. In addition the revenue
increased further to 6.9 £ billion by 2021 after lifting restrictions. Therefore, the revival was
quite strong for the restaurant and food services activities. Hence, certain restaurants were able to
manage of profit as they were providing take away facilities to their guests.
Quantitative analysis of the dataset using tools and techniques from the unit along with
your individual written Report
Because of coved-19 the hospitality industry was worst hit industry in which it caused
closure on several restaurants, pubs and more. The lock down restricted the travel of people from
one place to another which created the issue of maintaining effectiveness in business operations.
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This is been examined that in the first week of February 46% respondents has reported
that sales and revenue is low in comparison to same period in previous year. According to 34%
impact of respondent was same as like the previous year. Further, 21% respondent recognised
that sales will be high in the February first week. During the first two weeks of march, 8%
respondent will recognise that sales will be high than the last year. According to 14% respondent
the sales will be same as of previous year (Clark, and et.al., 2021). The sale of the restaurant was
low in 2020 rather than 2019 as 78% respondent shown their consent. Moving towards the last
two weeks of march, it is being evaluated that 96% respondent report on sales of store will be
lower than the previous year. Further, it is considered that 3% respondent will recognise that
sales was similar in last two weeks of march and 1% respondent reports on sales of restaurant
will be reducing in same year during last year.
Visualizations of data drawn from your quantitative analysis
In hospitality sector the sale & profit margin has profound impact which is analysed by
covid-19. It is been found from quantitative analysis that hospitality sector is hardest hit industry
due to pandemic. It is measured as most affected industries through lockdowns and limitations
imposed by government. It is being also evaluated that the accommodation & food activities are
affected deeply by pandemic. Apart from this, it is also monitored that sale and revenue of
company is declined because of this Covid-19 as there was less visit of customer. There was also
great impact on organisation revenue as people were having fear from coming out which makes
travelling lesser and people were not able to move out from their own place during the pandemic
time.
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From the above given chart, it is being analysed that Covid-19 is causing closure of
outlets, pubs, bars and restaurants. From the above chart, impact of pandemic is been shown on
hospitality organisation. Before Covid-19, by 15% the sales of outlets were declined whereas the
sales of all outlets of country is decline by 57.6% in march 2020. In case of pub, there is decline
in sales by 12% before covid-19 while during march 2020 the sales and revenue of pubs were
declined to 57.8%. It is been founded, from the analysis of quantitative data different hospitality
organisation such as pubs, restaurants, bars and outlet were affected by Covid-19. The above
chart shows that from pandemic the bars were also influenced (Impact of COVID-19 devastates
restaurant industry, 2022). There was decline in sales of bar from 14% before covid 19. On other
side, it has been witnessed that 60% sales of bar decline on the time of pandemic. Further, it is
estimated that by sales & revenue of the restaurants is reduced by 21% down during the COVID-
19 whereas 56.4% sales of the restaurants declined at the time of March 2020, pandemic.
Henceforth, the sales and revenue of hospitality organisation is affected intensely due to
pandemic which also creates tremendous impact on future time period.
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Findings
From the above given data, it is founded that covid-19 is uncertain vent which puts a major
impact on the organization of hospitality across the world. for addressing the covid-19 impact it
becomes imperative to make required improvements in effective manner. By the research study,
it is being analyzed that Ritz London has faced tremendous issues because of negative impact og
covid-19. This becomes possible to address the impact by creating necessary improvements
which are mentioned below-
 To the company it is recommended that to offer training program to their employees so
that they can cope with new environment. The offering of training will be beneficial for
increasing workforce efficiency in order to maintain balance with change work
environment (Japutra, and Situmorang, 2021).
 To have dealing with the impact of covid-19 it becomes imperative to adopt effective
technological advancements for employees so that they can stay connected with each other’s
during uncertain time period. This will benefit in sustaining proper collaboration between
staff for fruitful accomplishment of pre-defined goals.
CONCLUSION
From the above given information, it is concluded that covid-19 have major issues for
several companies across the globe. It is being evaluated that hospitality industry is one of
hardest hit industry because of global pandemic globally. In addition, the companies are facing
huge loss in sales and revenue because of pandemic impact. Apart from this, pubs, restaurants,
hotels and outlets were closed during pandemic. There is requirement of offering training and
using recent & updated technology to have dealing in effective way with challenges arises
because of pandemic.
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References:
Aigbedo, H., 2021. Impact of COVID-19 on the hospitality industry: A supply chain resilience
perspective. International Journal of Hospitality Management, 98, p.103012.
Burhan and et. al., 2021. Crisis management in the hospitality sector SMEs in Pakistan during
COVID-19. International Journal of Hospitality Management, 98, p.103037.
Chen, Z. and Hang, H., 2021. Corporate social responsibility in times of need: Community
support during the COVID-19 pandemics. Tourism Management, 87, p.104364.
Clark, J., Mauck, N. and Pruitt, S.W., 2021. The financial impact of COVID-19: Evidence from
an event study of global hospitality firms. Research in International Business and
Finance, 58, p.101452.
Japutra, A. and Situmorang, R., 2021. The repercussions and challenges of COVID-19 in the
hotel industry: Potential strategies from a case study of Indonesia. International Journal of
Hospitality Management, 95, p.102890.
ONLINE
A SAFE RITZ JOURNEY, 2022. [ONLINE]. AVAILABLE THROUGH :<
HTTPS://WWW.THERITZLONDON.COM/STAYING-SAFE-AT-THE-RITZ/ >
Coronavirus and its impact on UK hospitality: January 2020 to June 2021. [Online]. Available
through :<
https://www.ons.gov.uk/businessindustryandtrade/business/activitysizeandlocation/articles/
coronavirusanditsimpactonukhospitality/january2020tojune2021/>
Impact of COVID-19 devastates restaurant industry, 2022. [Online]. Available through:<
https://www.restaurantscanada.org/resources/impact-of-covid-19-devastates-restaurant-
industry/>
Percentage change in like-for-like sales of pub, bar and restaurant groups prior to the coronavirus
(COVID-19) lockdown in Great Britain in March 2020. [Online]. Available through:<
https://www.statista.com/statistics/1105174/uk-pub-and-restaurant-sales-fall-due-to-covid-
19/>
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Books and Journals
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